Nutanix reported fiscal Q2 2026 results that surpassed expectations. Adjusted earnings per share rose to $0.56 from the consensus estimate of $0.44, a 27% beat. Total revenue climbed to $722.8 million, up 10% year‑over‑year from $654.7 million in the same quarter a year earlier and beating the consensus estimate of $713.74 million by about 1.8%. The company’s earnings per share matched the prior year’s $0.56, indicating flat profitability while revenue grew.
Management lowered its outlook for the remainder of the year, citing supply‑chain constraints that are delaying server lead times. The company now expects Q3 revenue of $680 million to $690 million, down from the previous guidance of $700 million to $710 million. Full‑year revenue guidance was narrowed to $2.80 billion to $2.84 billion, a reduction from the earlier $2.90 billion to $2.95 billion range. Full‑year free‑cash‑flow guidance was revised to $745 million to $775 million, down from $800 million to $840 million. The non‑GAAP operating‑margin outlook for the year remains 21% to 22%.
Nutanix’s subscription‑based model continued to drive growth, with annual recurring revenue rising 16% year‑over‑year to $2.36 billion. The company added more than 1,000 new customers, its strongest quarterly acquisition rate in eight years. A strategic partnership with AMD, which includes a $150 million equity investment and up to $100 million for joint AI platform development, is expected to accelerate the company’s entry into the enterprise AI market. In addition, Nutanix completed a $300 million accelerated share‑repurchase program during the quarter.
CEO Rajiv Ramaswami said, "Our business performed solidly in the second quarter, including strong bookings, strong new logo additions, and solid free cash flow performance. Our opportunities with AI, modern applications, hybrid multicloud, and support for external storage provide us with a strong foundation for multi‑year growth." CFO Rukmini Sivaraman added, "Bookings in our first quarter were slightly higher than expected. However, late in the quarter, we saw some revenue shift from Q1 into future periods. We expect that the revenue over time remains unchanged. We expect this dynamic to continue and have factored it in our Q2 and updated full‑year revenue guidance. We are also pleased to raise our free cash flow guidance for the full year. Underlying demand and our view of business fundamentals for Nutanix remain unchanged."
Investors responded with a mixed reaction. The earnings beat and the AMD partnership generated enthusiasm, while the guidance cut and supply‑chain concerns tempered optimism. The company’s ability to maintain profitability and secure a significant AI partnership were viewed positively, but the headwinds highlighted by the guidance reduction signaled caution for the near‑term.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.